Cash out refi before 6 months.

5 Replies

Hello everyone, My wife and I recently purchased a couple properties and were hoping to brrrr them. However, the couple of banks we tried said that they won’t refinance at the new value before 6 months. I could get my original investment back but would really like the other equity. Does anyone know of a bank that does not have this requirement? Thank you for the help.

Where are your properties located?

Have you talked to any local banks?

@Dustin Lowry

Those are Fannie Mae and Freddie Mac rules.  A local portfolio lender (like a small bank or credit union) may make up their own rules, but generally that's what you're going to find across the board.  If a lender is going to sell those loans onto the secondary market, they're going to need 6 months to use the appraised value.

There are other lenders that will do no seasoning, but the rate and fees are generally higher.  Stick to the Fannie and Freddie loans for as long as you qualify and then venture into the next tier of lender for no seasoning loans.  Factor the carrying charge into your cash flow and talk to a lender early so you're ready to refinance after month 6.

Hope that helps


@Dustin Lowry How did you buy your properties?  Did you buy with cash?  Did you use a loan?  I wrote a pretty lengthy article on this subject HERE Let me know if you have any questions on the subject.  Thanks!

Thank you Stephanie and Andrew. I bought these houses in northern Indiana. I paid cash for them. Andrew I will read that article today. Thank you!

I have a local bank that will refi at 80% LTV at any time. Suggest you talk with small locals.

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